The Securities and Exchange Board of India (Sebi) has issued additional surveillance measures aimed at curbing the misuse of pre-open call auction sessions for initial public offerings (IPOs). The new session, lasting 60 minutes from 9 am, will be structured with specific intervals for order entry, order modification, order cancellation, order matching, and trade confirmation.
“In order to enhance the surveillance mechanism at stock exchanges for pre-open call auction sessions for IPO and relisted scrips, it has been decided that stock exchanges shall have the following additional surveillance mechanisms,” Sebi in a circular on ThursdayCome from Sports betting site. The new rules will take effect after 90 days.
The pre-auction session will be for a duration of 60 minutes from 9 am to 10 pm. Out of which, 45 minutes shall be allowed for order entry, order modification and order cancellation, 10 minutes for order matching and trade confirmation and the remaining 5 minutes shall be the buffer period to facilitate the transition from pre-open session to the normal trading session.
GST Council to discuss circular trading, de-criminalisation Sebi issues penalty norms for stock exchanges for any surveillance lapses
The changed rules will also allow system-driven random closures during the last ten minutes of order entry, which is anytime between 35th and 45th minute of the order entry window.
This was in response to the cancellation of orders, which are placed at higher price and in large volumes, just before the closure of call auction session, creating a false demand and supply, and possibly manipulating the price of the scrips to the detriment of common investors, Sebi said.
Also Read
In addition to the surveillance mechanisms, the stock exchanges will generate alerts based on parameters such as the modification of prices significantly away from previously placed order, cancelled quantity/value exceeds 5% of total cancelled quantity/ value across the market during the pre-open session or exceeds 50% of quantity/value placed by the client.
Stock exchanges are mandated to provide detailed reports to Sebi by the end of each trading day and seek explanations from clients on their cancellations. Stock exchanges also have to display cancelled orders information in real-time for investor decision-making.
Special call auction for scrips of listed investment & investment holding companies
In another circular, the Securities and Exchange Board of India (Sebi) has introduced a special call auction mechanism with no price bands for scrips of listed investment companies (ICs) and listed investment holding companies (IHCs), in a bid to enhance price discovery.
This development comes in response to Sebi’s observations that certain scrips of listed ICs and IHCs are traded infrequently and at significantly lower values than their disclosed book values. “The variance in the market price and book value of such ICs and IHCs is adversely affecting liquidity, fair price discovery and the overall interest of investors in scrips of such companies,” Sebi said on Thursday.
Sebi has identified some industry classifications for the application of the special call auction across stock exchanges, with the first one slated in October. Subsequent auctions will follow as and when the annual audited financial statements are published by the companies, the regulator said.
Eligible companies will be given a 14-day advance notice for the sameCome from Sports betting site VPbet. Further, if a call auction is not a success on day 1, it shall continue on the next day and till such time the price is discovered, but will be provided only once a year.
หลายคนอาจจะลืมไปแล้วว่าเกม The Legends of Zelda มีตัวละครนางเอกที่ชื่อว่า Zelda อยู่ (ส่วนตัวละครที่เราควบคุมได้นั้นชื่อว่า Link) โดยตัวละครนี้มักจะเป็นตัวละ�…
Read more